I was reading some economic news and American Airlines has filed for bk due to crushing debt and not earning a penny in over a decade. I understand the fed gov't sees airlines as necessary to keep the economy moving, and I'd agree that they are.
But I also started to think that the pax airline industry is no better financially that the pax rr industry was. Simply put, I don't think it's possible to make money with an airline. Labor and all overhead combined with low fares make it impossible. If airlines had to pay for traffic control and airports (the bill that the fed govt currently pays) there would simply be no way.
Now here is a question... from a corporate standpoint WHY do airlines such as AA bother to keep going? The purpose is to make money. Well if you haven't made a dime in 12 years I mean why not just give up the ghost? What is the point to continue to operate a company that is broke and is making nothing? Heck I wouldn't do it.
But I also started to think that the pax airline industry is no better financially that the pax rr industry was. Simply put, I don't think it's possible to make money with an airline. Labor and all overhead combined with low fares make it impossible. If airlines had to pay for traffic control and airports (the bill that the fed govt currently pays) there would simply be no way.
Now here is a question... from a corporate standpoint WHY do airlines such as AA bother to keep going? The purpose is to make money. Well if you haven't made a dime in 12 years I mean why not just give up the ghost? What is the point to continue to operate a company that is broke and is making nothing? Heck I wouldn't do it.